Bill Text: CA AB1439 | 2025-2026 | Regular Session | Amended

California Assembly Bill 1439

Bill Title: Public retirement systems: development projects: labor standards.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Engrossed) 2026-06-22 - In committee: Referred to APPR. suspense file. [AB1439 Detail]

Download: California-2025-AB1439-Amended.html

Amended IN Senate June 11, 2026

Amended IN Senate June 02, 2026

Amended IN Assembly January 22, 2026

Amended IN Assembly March 24, 2025

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill

No. 1439

Introduced by Assembly Member Garcia

February 21, 2025

An act to add Section 7513.77 to the Government Code, relating to public retirement systems.

LEGISLATIVE COUNSEL'S DIGEST

AB 1439, as amended, Garcia. Public retirement systems: development projects: labor standards.

The California Constitution grants the retirement board of a public employee retirement system plenary authority and fiduciary responsibility for investment of moneys and administration of the retirement fund and system. These provisions qualify this grant of powers by reserving to the Legislature the authority to prohibit investments if it is in the public interest and the prohibition satisfies standards of fiduciary care and loyalty required of a retirement board.

Existing law prohibits the boards of the Public Employees’ Retirement System (PERS) and the State Teachers’ Retirement System (STRS) from making certain new investments or renewing existing investments of public employee retirement funds, including in a thermal coal company, as defined. Existing law provides that a board is not required to take any action regarding those investments unless the board determines in good faith that the action is consistent with the board’s fiduciary responsibilities established in the California Constitution.

This bill would request the University of California, Berkeley, Labor Center to conduct an independent study to analyze the extent of labor standards protections in California real estate and infrastructure development projects funded through the real asset portfolios of PERS and STRS. The bill would request that the study and a report of its findings be completed and provided to the Legislature and the Department of Finance by January 1, 2028, as specified.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 7513.77 is added to the Government Code, to read:

7513.77.

(a) The Legislature finds and declares that the development of projects in California that do not involve strong labor standards protections for workers is not in the public interest or the interests of the participants in and beneficiaries of public pension and retirement systems.

(b) (1) The Legislature requests that the University of California, Berkeley, Labor Center conduct an independent study to analyze the extent of labor standards protections in California real estate and infrastructure development projects funded through the real asset portfolios of the Public Employees’ Retirement System (PERS) and the State Teachers’ Retirement System (STRS). The Legislature also requests that the study examine available evidence on the impact of labor standards protections, or lack of protections, on California workers and the state’s economy, development costs, project completion timelines, and other outcomes.

(2) The Legislature requests the Labor Center to complete its study and provide its findings to the Legislature, in compliance with Section 9795, and to the Department of Finance, by January 1, 2028.

(3) The Legislature requests PERS and STRS to provide the Labor Center with data relevant to this study, including internal data and data obtainable from or provided to their respective consultants, agents, contractors, and subcontractors, within 60 days after receipt of a written request from the Labor Center.

(1) “Board” means the Board of Administration of the Public Employees’ Retirement System, consistent with Section 20021, and the Teachers’ Retirement Board of the State Teachers’ Retirement System, consistent with Section 22109 of the Education Code.

(2) “Labor standards protections” means all of the following:

(A) Construction work performed to carry out and maintain the development project will be subject to the same prevailing wage and apprenticeship requirements that apply to public projects pursuant to Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.

(B) (i) All construction and maintenance work for the development project will be performed only by contractors and subcontractors that have provided an enforceable commitment to use a skilled and trained workforce, as defined in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code, to perform all work that falls within an apprenticeable occupation in the building and construction trades.

(ii) This subparagraph shall not apply if the work is covered by a project labor agreement that requires the use of a skilled and trained workforce. For purposes of this subparagraph, “project labor agreement” means a prehire collective bargaining agreement that establishes terms and conditions of employment for a specific construction project or projects and is an agreement described in Section 158(f) of Title 29 of the United States Code.

(C) The developer has provided commitments designed to provide labor peace during union organizing campaigns for workers who will be employed upon completion of the project.

(D) The developer has entered into a community benefits agreement that is informed by meaningful engagement and outreach to residents of the surrounding communities and that includes funding for, or direct implementation of, specific community improvements or amenities, including job access within the community in which the project is located.

(d) Nothing in this section shall be construed to require a board to take action as described in this section unless the board determines in good faith that the action described in this section is consistent with the fiduciary responsibilities of the board described in Section 17 of Article XVI of the California Constitution.